FHFA extends COVID-related loan flexibilities

This story appeared in Bank Digest.

The Federal Housing Finance Agency has announced that Fannie Mae and Freddie Mac will extend several loan origination flexibilities until Nov. 30, 2020, to ensure continued support for borrowers during the COVID-19 national emergency. These include: alternative appraisals on purchase and rate term refinance loans; alternative methods for documenting income and verifying employment before loan closing; and expanding the use of power of attorney to assist with loan closings. The flexibilities were set to expire on Oct. 31, 2020.